New Gujarat S&E Act becomes effective from 1st May 2019

The Government of Gujarat (Ministry of Labour & Employment) has enacted the Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019. Previously, the Bombay Shops and Establishments (Gujarat Extension and Amendment) Act, 1961 regulated the shops and establishments within the state of Gujarat. This new Act comes into effect on 1st May 2019. Some of the features of this Act are:

  1. Shops and Establishment having less than 10 employees is not required to registration under this Shops and Establishment Act.
  2. Application for Registration Certificate shall be filed by the employer within 60 days from the date of starting the business. However, those having a valid certificate under the 1948 Act, shall continue with the same till its expiry
  3. Shops in municipal corporation jurisdiction may remain open for business for 24 hours, while in municipalities may remain open till 2 am. In rural areas, establishments may remain open till 11 pm.
  4.  Definition of employees has been replaced by ‘Workers’ doing any work whether manual, skilled, unskilled, technical, operational or clerical against a certain compensation but does not include an apprentice under the Apprentices Act, 1961.
  5. Commercial establishment has been redefined as ‘Establishment’ to include residential hotels, restaurants, eating houses, theatres and other places of public amusement of entertainment within its scope.
  6. Exemption from periodic renewal of the Registration Certificate is granted except when there is a change in the ownership or the nature of the business. 
  7. The Act will enable to employ women workforce from 6 am to 9 pm, unlike 7 pm earlier. It has made provision to employ women in night shifts, provided the employer ensures their safety, including making provision for company-owned transportation.
  8. Establishment employing more than 100 employees have to make provision for canteen. A group of retailers or institutions can opt for a common canteen.
  9. Employer can maintain the registers and the records in electronic format.
  10. Penalty for contravening any provision of the Act is fixed upto Rs. 50,000 and if the contravention leads to any accident, it will be punishable with imprisonment of six months.

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